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the Chinese Government would take into full consideration the actual conditions in Hong Kong and would pursue special policies there designed to maintain stability and prosperity. Thus, in future, Hong Kong could become a special administrative zone
administered by local people and its existing economic and social system and style of life could remain unchanged. The capitalist system in Hong Kong would remain, as would its free port, and its function as an international financial centre. The Hong Kong dollar would continue to be used and to be convertible.
China would take into proper consideration the economic relationship which existed between Hong Kong and Britain and would take into account British interests in industry, commerce, finance, shipping and aviation. The British Government functionaries
could remain at their posts when the special administrative was set up.
To sum up, the basic policy of China on the question of Hong Kong was to recover the sovereignty of Hong Kong and maintain its prosperity. The two elements were inseparable and were a unity. But recovery of sovereignty was the pre-requisite. China could not place the maintenance of prosperity above this consideration. On the premise of recovering sovereignty, China could explore ways of maintaining and developing the prosperity of Hong Kong. He wished to repeat that China would not maintain the prosperity of Hong Kong and develop it at the expense of recovering sovereignty. China would not let others administer Hong Kong on its behalf nor place Hong Kong under the trusteeship of others.
The Prime Minister had said that if China recovered sovereignty, then confidence and prosperity in Hong Kong would be destroyed..
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The Prime Minister stated that this was not quite what she had said. She had stated that Hong Kong now flourished to the advantage of the people of Hong Kong, of China and of Sino/British relations. The present flourishing system in Hong Kong was due to British administration - including the predictability of British law and confidence in the Hong Kong currency. Its prosperity depended
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